The Central Bank of Nigeria (CBN) assured the public yesterday of its commitment to maintaining the stability of the financial system and the safety of depositors’ funds.
In light of persistent social media criticisms directed at Nigerian banks, the Chartered Institute of Banking of Nigeria (CIBN) and the Body of Banks Chief Executive Officers expressed their concerns. They emphasized that these attacks not only undermine the hard-earned reputation of financial institutions but also aim to unfairly manipulate targeted banks.
In a statement titled “CBN Reaffirms Commitment to Financial System Stability, Safety of Depositors’ Funds,” Hakama Sidi Ali, the Director of the Corporate Communication Department, stated:
“The Central Bank of Nigeria (CBN) wishes to reassure the public of its unwavering commitment to ensuring the stability and reliability of the Nigerian financial system. The CBN recognizes the crucial role that confidence plays in banking operations and wants to affirm that all deposits in Nigerian banks are secure.”
The CBN is actively ensuring that banks adhere to established regulations and best practices to maintain the integrity of the financial system. Regular stress testing is conducted to identify potential vulnerabilities, ensuring that financial institutions remain resilient. Furthermore, the CBN has implemented Early Warning Systems to proactively detect and address emerging risks, allowing for timely solutions to foreseeable issues.
The bank’s Risk-Based Supervision approach focuses regulatory efforts on institutions that may pose the highest risk to the financial system. This targeted strategy enables the CBN to maintain robust oversight while promoting the overall health of the banking sector. Additionally, the CBN has established Memoranda of Understanding with various countries where Nigerian banks have subsidiaries, enhancing regulatory coordination and ensuring compliance with both domestic and international banking regulations.
“The CBN remains dedicated to fostering a secure banking environment where depositors can be fully confident in the safety of their funds. It will continue to monitor and adapt strategies to safeguard the financial interests of all Nigerians and stakeholders in our financial system,” the statement concluded.
The CIBN and the Body of Banks Chief Executive Officers reiterated the significance of the banking sector, stating, “The Nigerian banking industry is governed by rigorous regulations issued by the Central Bank of Nigeria (CBN) and other regulatory bodies. Many of these banks are publicly listed and adhere to the highest standards of transparency and compliance required by domestic and international investors.”
They urged anyone with concerns regarding a bank’s operations to direct such issues to the appropriate regulatory authorities, which are equipped to address concerns impartially and professionally. They condemned social media attacks and smear campaigns, stating, “We urge individuals engaged in such actions to desist and consider the facts before making accusations.”